North Carolina Down Payment Assistance Programs

Online Merchant account - These programs will be the Down Payment Assistance System and the Mortgage Credit Certificate.

Also you buy a home between December 1, 2009 and January 1, 2009 and should you qualify for one of these plans, you could also qualify for the $8,000 tax credit merely enacted into law in the Federal Economic Stimulus Plan.

First, who is a First Time Home Buyer? There is a first-time Home Buyer someone who has not owned a home in the past three years. This is the exact same qualifying definition.

A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with low and average incomes. All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step farther. An MCC “reduces your tax liability according to a portion of the mortgage interest that you pay.

You are able to claim 20% of the interest you pay on your mortgage as a credit on your own federal income taxes, should you qualify for the MCC. You are able to save as much as $2,000 on your taxes.

Should you qualify for the MCC, for 2009, you'll manage to combine this with the $8,000 tax credit. This might reduce the tax liability of a buyer's .

Who qualifies for an MCC is based on your own income along with the purchase price of the home you are buying. Household income means the “gross income of the mortgagor and any other person expected to live in the home who's 18 years of age or older.”

House price limits that apply in Durham, Orange and Chatham Counties and the income are given below.

MCC Income Limits 1 Man $61,500 2 Men $61,500 3 Persons $70,500 4 Men $70,500

MCC Sales Cost Limitations New House $220,000 Existing Dwelling $210,000

Who Qualifies for Down Payment Assistance?

The buyer only has to pay and the load would pay as much as $8,000 of the remaining balance.

This program has more stringent income limitations than the MCC program summarized above. Like the MCC program, it may be used in conjunction with the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The deposit assistance, nonetheless, can not be employed in conjunction together with the MCC. It is an either or scenario.

The income and house price limitations that apply in Orange, Durham and Chatham Counties are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Men $45,650 3 Men $51,350 4 Men $57,050

Down Payment Support Sales Cost Limits New Home $210,000 Existing Home $210,000